Natural gas (26.12.2013) respected our analysis & moved to targets as per last report. However natural gas move to higher level after that but many important hurdles kept as away for time being.
[wp_ad_camp_5]
Now natural gas is trading around $4.460 & as we can see on charts the continue trading above $4.418 is indicating that the rally isn’t complete & we may witness further bullishness on coming trading session. However we also witness a possibility of negative divergence on RSI but it still has space for upside. Consolidation before the contract expiry providing more opportunity for buyers.
On fundamental side the 5 year average inventory for last week of the year is 3346 bcf while current inventory before last week withdrawal is 3248. The 5 year average price is $4.142 while current price is $4.460. Winter weather may continue in US major gas consuming area till starting of 2014.
Based on above studies, we will prefer to stay on bull side & looking for quick upside targets around $4.785 & then may be $5. However thin volume may generate volatility before moving up. The 5 year average price $4.142 will act as our SL on day closing basis.
There are more than 1000 tools to analyze any chart with more than 9 major time frames. So anytime when analyze any chart, you can’t avoid any chart pattern, indicator or probability. THE most comfortable position when you get direction forecasting support from 2 or more tools.
We are here for everyone – beginners to experts
Happy trading